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TheCityUK advocacy group claimed on Wednesday that in the run-up to Brexit, the United States overtook the European Union as Britain’s largest export market for financial services, with sales declining in 2020.
When Britain fully exited the EU’s orbit last December, its financial sector was largely cut off from the bloc’s single largest consumer.
Total financial services exports are expected to be unchanged in 2020, at 82.4 billion pounds ($109.07 billion). Exports to the EU declined 6.6 percent to 24.7 billion pounds, whereas non-EU exports increased 4.1 percent to 57.7 billion pounds.
According to TheCityUK, which promotes Britain’s financial sector abroad, exports to the United States increased by 5.3 percent.
According to TheCityUK, which promotes Britain’s financial sector abroad, exports to the United States increased by 5.3 percent. The United Kingdom’s financial services trade surplus of $80.6 billion is the world’s greatest, nearly equaling the combined surpluses of the next two leading countries, the United States and Singapore, at $91.7 billion.
Meanwhile, the EU is strengthening its financial autonomy, making it doubtful that Britain would regain full access to the continent’s investors and financial markets.
“The UK’s status as a world leading financial centre is at risk unless industry, government and regulators work together to boost long term competitiveness, deepen key trade links, and focus on new areas of future global growth,” said Anjalika Bardalai, TheCityUK’s chief economist and head of research.
To stay up with leader New York and stave off competition from EU towns like Amsterdam and Asian financial centers, Britain is overhauling its banking standards.
Story by : Norvisi Mawunyegah